APEEJAY COMMON ANNUAL EXAMINATION

SESSION 2022-23
CLASS - XI
TIME: 3 HRS. BUSINESS STUDIES (054) M.M. 80
General instructions :
1. This question paper contains 34 questions and is divided into 4 sections.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together.

SECTION A
1. Which of the following is not covered under the ‘Contract of Indemnity’? 1
a. Life insurance
b. Fire insurance
c. Marine insurance
d. Theft insurance
2. Sudden rise in the cost of operation is a cause related to which type of business 1
risk?
a. Human cause
b. Technological cause
c. Natural cause
d. Economic cause
3. The liability of the members in this form of business organization is not limited. 1
Identify such form of business organization from the following.
a. Partnership
b. Cooperative society
c. Private company
d. One person company
4. “Such variant of e-commerce enables a business to be in touch with its customers 1
on round-the-clock basis.”
Identify the constituent of e-business from the following based on the above
information.
a. B2C Commerce
b. B2B Commerce
c. Intra-B Commerce
d. C2C Commerce
5. Which of the following statement does not hold true in case of Equity shares? 1
a. It is suitable for cautious investors
b. It is a permanent source of capital
c. It does not create a charge on the assets of the company
d. The liability of the equity shareholders is limited
6. “It is a recognizable sign, design or expression which distinguishes products or 1
services of a particular trader from the similar products or services of other
traders.”
Identify the type of Intellectual property (IP) from the following based on the
above information.
a. Copyright

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 b. Patent
c. Trademark
d. Geographical Indication
7. “It grew as a major centre of textile industry and became popular for stunning 1
gold silk cloth and sandalwood workmanship.”
Identify the appropriate answer from the following based on the above
information.
a. Varanasi
b. Surat
c. Broach
d. Tamralipti
8. Name the document which serves as evidence that the shipping company has 1
accepted the goods for carrying to the designated destination.
a. Carting order
b. Mate’s receipt
c. Bill of Lading
d. Shipping order
9. Mohit took a double insurance of his factory, both from Company A and 1
Company B. A fire broke out in factory and the amount of loss was estimated to
be Rs. 70,000.
Which of the following statement will be false in this case?
a. In case of double insurance, the insurers are to share the losses in equal
proportion irrespective of the amount assured by each of them.
b. In case of double insurance, the insured will have no right to recover more
than the full amount of actual loss.
c. In case of double insurance, if the full amount of actual loss is recovered
from Company A, then Mohit cannot claim anything from Company B.
d. In case of double insurance, if the full amount of actual loss is recovered
from Company B, then Mohit cannot claim anything from Company A.
10 Which of the following statement is not true with regard to Trade Credit? 1
. a. It appears in the records of the buyer firm as ‘accounts payable’
b. It depends upon the financial strength of the seller
c. Large amount of funds can be generated through trade credit
d. It depends upon the reputation of the buyer
11 For what type of goods is mail order business not considered suitable? 1
. a. The goods that involve strong competition
b. The goods that can be described through pictures
c. The goods that can be graded and standardized
d. The goods that have a ready demand in the market.
12 Match the columns and choose the correct alternatives: 1
.
Column I Column II
A. B2B Commerce i. A firm’s internal processes.

B. B2C Commerce ii. A part of channel through which a

firm distributes its products to its
customers

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 C. Intra-B Commerce iii. The business originates from the
consumer and ultimate destination is
also consumer

D. C2C Commerce iv. Entails a wide gamut of marketing

activities that are carried out online

a. A – iv, B – ii, C – i, D – iii

b. A–iii, B–ii, C–i, D–iv
c. A–ii, B–i, C–iii, D–iv
d. A–i, B–ii, C–iii, D–iv

13 “Return of allotment”, signed by a director or secretary is filed with the Registrar 1

. of Companies within how many days of allotment of shares?
a. 15 days
b. 8 days
c. 10 days
d. 30 days
14 This document defines the relationship of a company with outsiders. Identify such 1
. document.
a. Prospectus
b. Articles of Association
c. Memorandum of Association
d. Certificate of Incorporation
15 Ayush got his office insured for Rs. 5 crores against fire. Due to a short circuit, a 1
. fire broke out in the office and the amount of loss was estimated to be Rs. 20
lakhs.
What is the amount of claim payable by the insurance company in this case?
a. Rs. 5 crores
b. Rs. 4.8 crores
c. Rs. 20 lakhs
d. Rs. 10 lakhs
16 Under which of the following areas, departmental stores are not in 1
. advantageous position over smaller forms of retail businesses?
a. Number of customers
b. Operating costs
c. Sales promotion
d. Scale of operations
17 The purpose of this study is to access if the raw materials and technology required 1
. to pursue a particular business proposal are easily available.
Identify such feasibility study from the following options.
a. Economic feasibility study
b. Financial feasibility study
c. Technical feasibility study
d. Legal feasibility study
18 Which of the following document is not required for obtaining export license? 1
. a. IEC Number
b. Letter of Credit
c. Registration cum membership certificate

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 d. Sight Draft
19 Read the statement carefully and choose the correct alternative: 1
. Statement I: There is high investment for setting up in e-business.
Statement II: e-business is also helpful in personnel recruitment, selection and
training.
a. Both the statements are true.
b. Both the statements are false.
c. Statement I is true, Statement II is false.
d. Statement II is true, Statement I is false.
20 Rahi Ltd. is a company dealing in organic products. The company requires funds, 1
. for short term, in order to meet the additional demand during festival season. The
financial manager of the company suggested that the company can borrow funds
from Rare Limited. Rare Limited deals in FMCG products. Identify the suitable
source for raising funds to be used by financial manager in the above case.
a. Inter corporate deposits
b. Trade Credit
c. Cash Credit
d. Bank Overdraft
SECTION B
21 Gauri took an insurance policy for her home without disclosing that the home is 3
. being used to house a catering business. After few months, a gas cylinder
explosion, caused major damage to her property. Consequently, she filed a claim
against the insurance company for compensation of loss. On investigating the
matter, the insurance company discovered about the commercial use of the home
and refused to pay any claims.
Identify and explain the principle of insurance which has been violated in the
above case.
22 Explain any three elements of business ethics. 3
. OR
Explain the social responsibility of the business towards the following interest
groups :
a) Shareholders or Owners
b) Consumers
c) Government and community
23 Mother Dairy was commissioned in the year 1974 as a wholly owned subsidiary 3
. of the National Dairy Development Board (NDDB). The company originally
focused on Delhi and other parts of National Capital Region (NCR). It later
expanded to other regions in India. Today, Mother Dairy manufactures markets &
sells milk and milk products including cultured products, ice creams, paneer and
ghee under the Mother Dairy brand. The company also has a diversified portfolio
with products in edible oils, fruits & vegetables, frozen vegetables , pulses,
processed food like fruit juices, jams etc. to meet the daily requirements of every
household. In the survey, the brand also witnessed a significant move in its Trust
Index from 70% to 83% in 2015.
In context of the above case:
a) Define the term ‘company’.
b) In the light of the above paragraph, briefly outline any two merits of a
company form of organisation which have contributed effectively towards
the growth of Mother Dairy over the years.
OR

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 Shri Mahila Griha Udyog Lijjat Papad, popularly known as Lijjat, is an
organisation which was started in the year 1959, in an old residential building in
Girgaum (South Bombay) by a few Gujarati women with a capital of Rs. 80 who
aimed to earn their living through their cooking skills. They started with the
production of 4 packets of papads. In 2019, it had an annual turnover of more than
Rs. 800 crores and providing employment to 43,000 women across the country.
A part of the structure of the organisation is depicted below :

Managing Committee of 21 members

Six Office Bearers

President, Vice President, Two Secretaries, Two Treasures

a) Identify the form of business organisation being described above.

b) Briefly explain its any two features.
24 Distinguish between Business, Profession and Employment on the basis of : 3
. a) Mode of establishment
b) Nature of work
c) Capital investment
SECTION C
25 Life Insurance Corporation of India is the largest insurance company in India. It is 4
. headquartered in Mumbai. It was founded in the year 1956 when the Parliament of
India passed the Life Insurance of India Act that nationalised the private insurance
industry in India. Over 245 insurance companies and provident societies were
merged to create the state owned Life Insurance Corporation.
In context of the above case:
a) Life Insurance Corporation of India is classified as which form of public
sector enterprise?
b) Was it necessary for the Parliament of India to pass the Life Insurance of
India Act for its formation? What does the Act define?
c) State any two merits of promoting Life Insurance Corporation of India in a
particular form of public sector enterprise as identified in part (a) of the
question.
26 Zoravar is a leading manufacturer of medical appliances in India. His company is 4
. famous for selling quality goods in wide variety in the country. His most selling
medical appliances include absorbent gauze, sterile gloves, surgical face masks,
surgical caps, crepe bandages and other surgical disposables. He has recently
procured an export order for these medical appliances and has obtained his Import
code number. Since he has a ready stock of goods to be exported he wishes to
complete all other formalities before applying for the reservation of shipping
space.
In context of the above case :

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 a) What are the various formalities that Zoravar has to complete before
applying for the reservation of shipping space?
b) Briefly outline the document that will be issued by the shipping company
once his request for reservation of shipping space is accepted.
OR
State the benefits of international trade to the business firms.
27 Nikhil and Nikunj decide to start a partnership firm together. Their common 4
. friend Drishti tells them that it is advisable to have a written agreement as it
constitutes an evidence of the conditions agreed upon in partnership and proves to
be helpful in resolving any controversies which may arise in future.
In context of the above case :
a) Identify and explain the document being referred to by Drishti.
b) State any six aspects covered in this document.
28 After attending a class on ‘Sources of Business Finance’, Vrinda , a student is not 4
. clear about certain concepts related to the chapter.
a) A company has made a profit of Rs. 70 lakh, but it has paid tax only on
Rs. 50 lakh.
b) When we consider debt to be a cheaper source of finance than equity,
then why can’t a company be promoted purely on debt capital?
c) Why does an issue of additional equity share capital dilutes the control
of existing equity shareholders?
d) Why is the dividend on shares is payable at the discretion of the
directors?
You are expected to clarify all her doubts, with the help of suitable examples
wherever required.
OR

Explain any four ways through which Startups can fund themselves.
29 Sona, Mona, Roma and Donna visited a nearby bank to open a bank account. 4
. Since they were totally unaware of the different types of bank accounts, they
requested the relationship manager at the bank to give them an insight into the
different types of bank accounts options available with the bank. Being an
experienced person the relationship manager, first enquired about their specific
requirements.
Mona shared that she has received cash prize of Rs. 10000 that she would like to
place in an account which offers high rate of interest. She also mentioned that she
does not need to withdraw this money before 5 years.
Roma said, she has started earning money through tuitions and would like to place
her savings in an account.
Donna told the manager that she has got her business registered with an e-
commerce company and most of your business transactions will now be routed
through the bank.
Sona expressed her desire to deposit Rs. 500 from her pocket money in an account
every month for the next 2 years to buy a designer lehenga for her sister's
wedding.
Identify and explain the different types of bank accounts being described in the
above paragraph. Also, quote the relevant lines.
30 Differentiate between Traditional business and E-business on the following basis: 4
. a) Operating cost
b) Nature of human capital

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 c) Ease of going global
d) Shape of the organisational structure
SECTION D
31 a) What advantage does issue of Debentures provide over the issue of Equity 6
. shares? Give any three of them.
b) State any three merits of retained earnings as a source of finance. (3+3)
OR
Livin had aspired to start a Thai food restaurant from his childhood. On
completing his education, he shared his childhood dream with his father.
Therefore, the father-son duo decided to approach a nearby bank for obtaining a
loan. His father’s foremost concern was to raise finance for the business as his
savings would be insufficient for starting a business.
In context of the above case:
a) Define the term business finance. (1 mark)
b) Briefly outline the importance of business finance. (1 mark)
c) The two types of funds on the basis of ownership are being discussed
above. Identify and differentiate between them by giving any three suitable
points. (3 marks)
d) Give any two examples of long term sources of raising funds. (1 mark)
32 Ridhima wanted to buy a particular type of footwear of a good brand. Her mother 6
. took her to a branded store located in a popular market in the city. To her
disappointment, she could not find her size in the style that she had liked. But her
mother pacified her by saying that she should not lose heart, as there are three
more stores of the same brand in the city. When they visited another store of the
same brand in the city, she was surprised to see that it had the identical products
and display like the previous one.
a) Identify the type of retailer been described in the given paragraph. (1
mark)
b) State any three features of such type of retailers. (3 marks)
c) Also, discuss its any two limitations. (2 marks)
OR
Taruna gave money and asked her 14 year old son Angad to make payment to the
delivery man for the Pizza that she had ordered for him. On seeing the bill, Angad
was surprised to see that the tax had been deducted under two headings, CGST
and SGST in the bill and enquired about the same from his mother. Taruna
explained to him about the new system of tax which has been implemented in our
country.
A) With reference to the above paragraph, give the full form of CGST and
SGST. (1 mark)
B) Why is the tax being deducted under two headings as mentioned in the
above paragraph? (1 mark)
C) Also, explain the features of the related tax system. (4 marks)
33 Define the term Entrepreneurship. Explain its characteristics in detail. 6
.
34 Daivik is planning to import a special packaging machine from Germany for his 6
. business. Being ignorant about the procedure, he has hired an import agent, Mr.
Gagan. Mr. Gagan has asked him to first browse through the websites of the
exporters who are dealing in desired machinery. Then, he should send a written
request to the short listed exporters asking them for the supply of information
regarding the price and various terms and conditions on which the latter is ready

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to export goods. Mr. Gagan has also informed him that in response to this request,
the exporters will forward him a document containing information with respect to
the quality, features, design, size weight and price of the export product along
with the terms and conditions on which their export will take place.

Moreover, once the order is confirmed, he will have to get registered with the
Directorate General Foreign Trade (DGFT) in order to obtain a special code
number which is required to be mentioned on most of the import documents.
Since, the foreign trade may take place in a different currency, Daivik will also
have to apply for foreign exchange.
A) Identify the two documents being described in the first paragraph of the
question. (1 mark)
B) What does the special code number mentioned in the case study refers to ?
(1 mark)
C) To whom does Daivik needs to approach for obtaining foreign exchange?
(1 mark)
d) Explain the next three steps to be performed by Daivik, after obtaining
foreign exchange. (3 marks)